EUR/CAD: Volume Profile and Price Action Analysis

Hello guys,

yesterday I sent out a video with a couple of trading ideas/predictions. If you missed it, then you can watch it here: Volume Profile Trading Ideas – 4th October 2021

One of those trades already played out. Here is how it went:

EUR/CAD Analysis

In today’s day trading analysis, I would like to talk about EUR/CAD.

The price was moving inside a price channel. In this case, not so clear channel but still, it was not that hard to identify.

What caught my eye was that there was a strong selling activity starting from that channel.

To me this is a sign that strong (institutional) Sellers were building up their Short positions inside that channel.

You can see their volumes nicely if you use my Flexible Volume Profile tool – just like I did.

A Rotation Followed by a Trend

So, what we have here is a rotation in which heavy volumes were traded. From this rotation, a strong & aggressive sell-off started.

This sell-off tells me, that it were strong Sellers building up their shorts in that rotation.

What I am interested the most now is the place where most of the volumes were accumulated. A zone starting at 1.4658.

EUR/CAD; 30 Minute chart:

Resistance at 1.4658

This zone is now a strong Resistance. The reason being is that the zone is important for those Sellers who were accumulating their Short there. It’s important because they placed a lot of their trades there (lot of volumes).

When the price makes it back into this zone again, then it is likely that those institutional Sellers will want to defend this place and push the price downwards from there again.

Aggressive Sellers defending their Shorts is what should make the zone starting at 1.4658 a strong Resistance.

This setup I used is called the Volume Accumulation setup, and you can learn all there is about it in my Elite Pack Trading Course.

Do you want ME to help YOU with your trading?

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I hope you guys liked my analysis! Let me know what you think in the comments below!

Happy trading,

-Dale

Comments

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